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Strategic Wealth Partners founding member Tony Zabiegala and Spectrum Management Group Bob Phillips on where to invest in this market environment.
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In our market -- the panel Tony's -- gala and Bob Phillips.
-- -- start with you because you are -- -- the US markets right now -- you feel pretty good about the eurozone as well as Japan so.
Why -- -- bite here at home you're also very bullish overseas.
How does one -- that -- their portfolio.
I'll right now to play that in your portfolio you have to take into consideration who were working with -- working with.
Entrepreneur -- -- have exited their business are getting ready to and -- these are successful people.
They don't need to hit home runs but they don't need to strike out right now.
I'll right now were overweight.
Japan we're overweight the Euro -- high yield corporate bonds.
And emerging markets.
Were underweight.
US treasuries and investment grade corporate bonds.
And right now we've shifted from overweight to neutral for US equities and we're shifting those -- those assets more into.
The -- overweight areas that I just mentioned.
Are on the other side of this equation Bob -- somewhat over a cautious bad let's put it that way what are you most worried about in the new year.
Well I think when you look at what's driving the markets and there's no question there's an upward trend that that has developed and we think we'll continue.
That it's all based upon the Fed creating liquidity so as long as the Fed's buying a hundred billion dollars a month of mortgage backed securities and treasuries.
And putting on the liquidity in the markets got to find -- place to go.
And we think you know for now it's going to be into the equity markets.
There -- a slight increase of in the ten year yield yesterday it's -- a possibility also that you could have money it.
Has flowed heavily in the bonds last three years been back to the equity side of the market to you but does not driven by we believe strong fundamentals.
Analysts are expecting earnings for the S&P in 2013.
Thirteen to be up 14%.
And down we have thoroughly questioned where that sales will come from the generate that kind of positive upward movement so when you look at the fundamental valuations -- -- little bit stretched.
-- -- want to know -- like to ask people that are bearish.
Right now in the overall market is that it's -- your job -- -- people put money to work and do something with that money.
I understand you are bullish on some US equities what are thing.
What did you look for where the trends are and certainly health care is a place that is defensive and a strong trends there.
Companies like Chris turner that we are recommending right now and -- client portfolios.
And it's electronic medical records company and and that's been a strong push by the US government putting out big monetary.
Incentives for hospitals and medical practices to implement these records and they're putting in place also a lot of penalties that they don't.
These companies and hospitals don't make those.
And deadlines come and its servers got on to your backlog basically.
Already in place and it continues to grow so we think places like that where there's positive trends that are driven by.
No one.
Government I guess impose policies are are pretty good places to invest.
Tony let me I was intrigued by what you say -- you mentioned Japan and eurozone is to potential areas that you're interested in.
Why and how do you play them as an invest up.
Well right now we like the Euro zone there more on a bottoming process right now where US equities are morning topping process.
So off as is a great way to play that's it has a nice 3% yield.
In -- came out and said that he would do anything he can do to make sure that this plan doesn't fail.
They're gonna -- -- continue to buy debt until -- the problem is solved.
The Japan the rolling -- -- quantitative easing package that's very similar to our maybe even a little more aggressive than the United States.
They're gonna try and devalue the yen and so that you can see an appreciation image of -- Japan market.
Here in United States we always said don't fight the Fed.
In Japan don't fight that Bank of Japan the.
I ND NN I think you could say we -- worst that we saw the big fight to fight right here at home and that's the debt ceiling.
As we entrances new year -- eight Tony.
Is that the -- apart is that -- may -- prevent you from being more bullish in this environment because they're still so much uncertainty.
I you know what I think politicians.
Are starting to realize they can't be playing this jousting match they've been having.
What the last that sealing the fiscal cliff which is behind us temporarily.
So I think -- When they come to the table what the solution.
The markets are going to all rally just like they have in the past I think they're gonna come up with a solution.
But until there is a solution until there is something.
I think we're gonna see some volatility.
But I really think they're gonna come to the table with a good solid solution.
It's gonna give the Republicans a chance to put their foot down on some of these and some of this public spending.
And it's going to be positive for the investor.
Bob let me finish -- here.
You like emerging markets people say that a lot of which market in particular are you particularly.
Hard on right now.
-- everything China is poised to -- begin growing faster than expected again.
Other PMIs came out last month and there -- about fifty again and I -- been that way for three months in a row.
So there's been a lot of concern about a hard landing in China we think -- -- more soft and hard and that's gonna drive the Pacific countries.
-- faster growth and I think people are currently anticipating.
Very good thank you so much gentlemen thank you -- have a dollar and Bob Phillips thank you for being on all panel today thank -- appreciate it thank you settle.
